ALABAMA AMNESTY 2018

ALABAMA TAX DELINQUENCY AMNESTY ACT OF 2018.

BEGINNING JULY 1 2018 AND ENDING SEPTEMBER 30 2018.

Alabama Tax Delinquency Amnesty Program Act 2018-153

On March 6, 2018, Governor Kay Ivey signed into law the Alabama Tax Delinquency Amnesty Act of 2018. The act provides an opportunity for eligible taxpayers to voluntarily come forward and resolve their delinquent filing and payment obligations for certain types of Alabama taxes and receive a waiver of all of the interest and penalties associated with these delinquencies.

Features of the 2018 Amnesty Program:

Applies to eligible taxes due before, or for tax periods that began before, January 1, 2017.

Contact includes any previous contact of any kind by the Department or an agent with regard to potential liability for the type of tax identified in the amnesty, including but not limited to nexus questionnaire; filing of returns; an audit or notice of audit; registration with Secretary of State or Department; request for an extension to file a return; payment notices/billings relating to the delinquent returns or estimated tax; and non-compliance issued in response to an application for certificate of compliance by the taxpayer.

ELIGIBLE TAXPAYERS

Taxpayers that are not a party to a criminal investigation or litigation in any court of the United States or Alabama pending as of March 6, 2018, for nonpayment, delinquency, or fraud in relation to any Alabama state taxes administered by the Department.

Taxpayers that have not been contacted by the Department within the last 2 years.

INELIGIBLE TAXPAYERS

Taxpayers who have been contacted by the Department within the last 2 years.

Taxpayers with an outstanding debt shown on the Department’s records in the form of a bill, assessment, or civil collection action (for example, garnishment).

Any taxpayer who has been scheduled for audit or is currently under investigation.

Taxpayers who have been issued a final assessment in which the appeal period has ended pursuant to §40-2A-7.

Any taxpayer who has delivered or disclosed a false or fraudulent application, document, return, or other statement to the Department in connection with an amnesty application.

Taxpayers who have entered into a Voluntary Disclosure agreement with the Department before December 31, 2017.

Taxpayers who have been granted amnesty for the tax type as part of the Alabama Tax Delinquency Amnesty Act of 2016.

ADDITIONAL PROVISIONS

Amnesty program participants must agree to waive the right to protest or initiate an administrative or judicial proceeding related to the specific tax and the tax period for which the amnesty is granted.

Amnesty approved taxpayers must include the current year return (example: 2017 income tax return) for eligible tax types with the amnesty returns.

An overpayment that arises after the filing of the amnesty application may make participants eligible for a refund or credit. No interest shall be paid on refunds for a tax period for which amnesty is granted.

A taxpayer who files an amnesty application retains all administrative and judicial rights of appeal with respect to any additional tax assessed by the Department.

A taxpayer who delivers or discloses any false or fraudulent application, document, return, or other statement to the Department in connection with the amnesty will be deemed ineligible and be subject to the fraud penalty (§40-2A-11(d)), or penalty of $10,000, whichever is greater, beginning tax years January 1, 2017, through December 31, 2024.

A negligence penalty (§40-2A-11(c)), or a $100 penalty, whichever is greater, is applied to taxpayers that participate in the amnesty and later fail to comply with any payment or filing requirements of the particular tax type for which the amnesty was granted, beginning tax years January 1, 2017, through December 31, 2024.

*LOOK BACK PERIOD

The Amnesty Act of 2018 provides a three-year “look-back period” for all taxes eligible under the amnesty program. Taxpayers are not eligible for the 3-year limited look-back period to the extent they collected taxes from a customer or employee. However, they are eligible for a penalty waiver when they remit these taxes during this program provided that the taxpayers do not already have an account set up to remit these taxes. Example: If you collected sales tax on sales starting in May 2008, you must remit the sales tax you collected for tax periods beginning in May 2008.

Testimonials

Marcos is simply the best. As a self-employed musician, my taxes are usually pretty involved, and year after year Marcos has done a fantastic job of untangling things and making sure that I keep as much money in my pocket as possible! He works absurdly fast and is always very responsive if I have any questions. I highly recommend him!

Greg S.

We have used Sauri Tax services for years. Marcos is very personable and explains the in’s and out’s of tax return requirements clearly. Stress free and quick service is a plus! Thanks for the positive experience.

Adriana B.

Marcos has been preparing my taxes for four years now. His professionalism, positive attitude, ethical approach, efficient work, and tax code expertise makes working with him not only beneficial, but a joy. He consistently procures the maximum amount refund for me and does so quickly. I first came to Marcos because my previous preparer was not providing the care and attention to my financial matters that I thought necessary. My returns were getting smaller and smaller while their fee was getting larger and larger. After I switched to Marcos I saw my tax returns increase substantially and gained a person who would fight for what I was owed. I no longer have to worry that I’m not getting my full refund back. I no longer have to wonder if I have someone looking out for my financial interests rather than their own. I will never use anyone else nor will I need to.

Aaron K.

Marcos has filed the returns of my wife and I for the past few years, and we don’t plan on using anyone else in the future. He’s honest, fair, and he works fast. Perhaps best of all is his integrity and the personal touch he applies to his work. You get the sense that he loves what he does and he cares about helping his clients. I can’t recommend him more glowingly.